EC provisionally designates AWS and Azure as gatekeepers under the DMA

The European Commission has informed Amazon and Microsoft that it provisionally designates their cloud services, Amazon Web Services (AWS) and Microsoft Azure, respectively, as gatekeepers within the meaning of the Digital Markets Act (DMA). That position was published on 25 June 2026, seven months after the market investigations were launched on 18 November 2025. The Dutch regulator Autoriteit Consument & Markt (ACM) was involved in the investigation.

Both companies now have the opportunity to respond to the preliminary findings. A formal designation is expected in the fourth quarter of 2026. Roundtable discussions with stakeholders on technical interoperability, procurement economics and contractual conditions are already scheduled before 1 July 2026.

Qualitative assessment instead of fixed thresholds

The DMA normally applies quantitative thresholds to determine whether a company qualifies as a gatekeeper. In this case, the EC has opted for a qualitative assessment. AWS and Azure together account for approximately 70% of cloud revenues in the EU, but the Commission explicitly bases its position on the broader market position of the two services.

According to the EC, AWS and Azure function as an important gateway between businesses and their customers in the EU. The Commission points to significantly higher revenues and investment capacity than competitors, large and established user bases, and strong lock-in effects due to high switching costs. The broad ecosystem of AI tools and partnerships is also weighed as a factor influencing the procurement of cloud services.

What a formal designation would mean

If the Commission converts its preliminary position into a formal designation, Amazon and Microsoft would have six months to comply with DMA obligations. Those obligations may include interoperability mandates, data portability requirements, restrictions on so-called egress fees, and prohibitions on favouring their own AI services over those of third parties.

In the event of repeated infringements, fines can reach up to 20% of annual global turnover. Teresa Ribera, Executive Vice-President of the Commission for a Clean and Competitive Transition, and Henna Virkkunen, Executive Vice-President for Tech Sovereignty, have underlined the importance of a well-functioning and competitive cloud market in Europe.

Amazon and Microsoft contest the assessment

Both companies responded critically to the preliminary position. Amazon argues that the EC is ignoring the breadth of the European cloud offering and refers to a study it commissioned that lists more than 200 European cloud competitors. According to Amazon, the designation harms the European investment climate and hampers innovation.

Microsoft directs its criticism at the selection of only two gatekeepers. The company points out that Google Cloud falls outside the scope, despite that service also holding a significant position in the European market. Microsoft argues that the designation therefore presents a distorted picture of the market and could have damaging consequences for the sector.

Broader implications for the European cloud market

For European businesses using AWS or Azure, a formal designation could bring greater freedom of choice and lower barriers to switching cloud provider. Obligations around interoperability and data portability directly affect the day-to-day operations of organisations that are currently heavily dependent on a single supplier.

The case is also relevant for the Dutch and European AI scene, given the focus on AI self-preferencing. If major cloud providers are required not to favour their own AI services over those of third parties, that would in theory open up space for smaller European players. The Commission will weigh Amazon's and Microsoft's responses in the coming months before reaching a final decision. The ACM will remain involved as national regulator in that process, making the outcome relevant for the Netherlands as well in terms of oversight of the digital infrastructure on which many businesses and government services rely.